RenovoRx Q2 2026 Earnings Report

RenovoRx EPS Results

• Actual EPS: -$0.05
• Consensus EPS: -$0.07
• Beat/Miss: Beat by +$0.02
• One Year Ago EPS: N/A

RenovoRx Revenue Results

• Actual Revenue: $0.91 million
• Expected Revenue: $0.70 million
• Beat/Miss: Beat by +$205.00 thousand
• YoY Revenue Growth: N/A

RenovoRx Announcement Details

• Quarter: Q2 2026
• Date: 8/12/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, August 12, 2026
• Conference Call Time: 4:30PM ET

RenovoRx (NASDAQ:RNXT) is a clinical-stage medical technology company focused on the development of proprietary drug-device combination therapies for the treatment of solid tumor malignancies. The company’s lead product candidate, RenovoCath™, is an intra-arterial catheter system designed to deliver high concentrations of chemotherapeutic agents directly to tumor sites while minimizing systemic exposure. RenovoRx seeks to improve clinical outcomes and reduce adverse effects by enhancing drug delivery precision in hard-to-treat cancers.

RenovoCath™ is being evaluated in multiple clinical trials targeting advanced pancreatic cancer and metastatic colorectal cancer, among other solid tumors. By leveraging a patented catheter design, the system enables localized drug perfusion through arterial infusion, potentially enhancing tumor uptake of chemotherapeutic agents. RenovoRx has also entered strategic collaborations to advance its clinical programs, including licensing arrangements for development and commercialization in select international markets.

Headquartered in Little Silver, New Jersey, RenovoRx conducts its clinical development activities through a network of investigative sites across the United States. The company’s management team comprises seasoned professionals with experience in interventional oncology, medical device development and regulatory affairs. As a Nasdaq-listed entity trading under the symbol RNXT, RenovoRx continues to advance its pipeline toward pivotal studies with the goal of offering new treatment options for patients with limited therapeutic alternatives.

RenovoRx Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record revenue and upgraded guidance: Second-quarter revenue rose 61% sequentially and 115% year over year to $909,000, prompting RenovoRx to raise 2026 revenue guidance to $3.75 million–$4.25 million from $3 million–$4 million.
• Positive Sentiment: Commercial expansion is accelerating: Active commercial cancer centers increased from 16 to 21 during the quarter, with 42 additional centers in the pipeline and a target of at least 36 active centers by year-end. Management said repeat orders and site conversions from the TIGeR-PaC trial should support another record revenue quarter in Q3.
• Positive Sentiment: Clinical and product opportunity expanded: RenovoCath was used commercially for the first time in a sarcoma patient, providing physician-driven evidence of potential applications beyond locally advanced pancreatic cancer. Management also cited supportive clinical publications and growing physician advocacy.
• Positive Sentiment: Phase III trial enrollment completed: The TIGeR-PaC study is nearly fully randomized, with 78 of the required 86 events reported as of August 11, 2026. Trial completion is expected in the first half of 2027, with initial topline data anticipated in the second half of 2027.
• Negative Sentiment: Company remains loss-making and cash-constrained: RenovoRx reported a $3.4 million operating loss and held $9.5 million in cash at quarter-end. Although management expects cash to fund operations into the second half of 2027 and projects cash-flow break-even in Q4 2027, further capital could be needed if growth or trial timelines fall short.

Presentation

[Operator]

Good afternoon. I will be your conference call operator today. Please note that today's call is being recorded, and all participants, other than management, are in listen-only mode. There will be a Q&A session following management's presentation. I will now turn the call over to Valter Pinto, Managing Director of KCSA Strategic Communications. Please go ahead.

[Valter Pinto, Managing Director at KCSA Strategic Communications]

Thank you, operator. Good afternoon, and welcome everyone to the RenovoRx second quarter 2026 financial results conference call. I am joined today by members of our leadership team, including Shaun Bagai, Chief Executive Officer, Dr. Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder, and Mark Voll, Chief Financial Officer. Before we begin, I would like to remind everyone that statements made during today's call contain or may contain forward-looking statements covered by the safe harbor provisions that are part of the Private Securities Litigation Reform Act of 1995 and applicable federal securities laws. These statements, including statements regarding RenovoRx's clinical and commercial plans, strategies, and estimates or expectations of financial or operational performance, including revenue, are based on management's current plans and assumptions, and actual results may differ materially.

[Valter Pinto, Managing Director at KCSA Strategic Communications]

Please refer to our filings with the SEC, including our Form 10-Q for the quarter ended June 30th, 2026, for a detailed discussion of the risks and uncertainties facing RenovoRx. With that, I would now like to turn the call over to our Chief Executive Officer, Shaun Bagai.

[Shaun Bagai, CEO at RenovoRx]

Thank you, Valter, and good afternoon, everyone. Over the past several quarters, we set out three milestones for RenovoRx. In this quarter, we delivered on all three. First, revenue growth. The second quarter was a record revenue quarter, our strongest to date. Second, commercial momentum. We activated new commercial cancer centers at a pace ahead of our internal targets. Third, expansion beyond locally advanced pancreatic cancer. For the first time, a treating physician chose RenovoCath to deliver therapy to a patient with a different solid tumor. We told our investors we were going to achieve these goals, and we delivered. Last quarter, we spoke openly about the meaningful progress we have made on the commercialization of RenovoCath, shifting our narrative from concept to execution and growth. This quarter shows our commercial execution in action with our highest quarterly revenue, and we could not be more excited about our future.

[Shaun Bagai, CEO at RenovoRx]

Our job now is to keep delivering quarter after quarter. For the second quarter ended June 30, 2026, RenovoRx generated record revenue of $909,000, our strongest quarterly performance to date, increasing approximately 61% sequentially and approximately 115% year-over-year. To put this performance in perspective, our second quarter revenue alone represented approximately 83% of our entire full year 2025 revenue of $1.1 million. This is the direct, measurable result of the commercial model we have described. More active commercial cancer center customers, more procedures, and more revenue. With each new center we activate adding to our growth and creating a compounding effect. Let's walk through our predictors of our future revenue. Revenue growth is the outcome, but the leading indicator of continued revenue growth in the coming quarters and the metric I would encourage investors to continue to watch most closely is new account activations.

[Shaun Bagai, CEO at RenovoRx]

Our activated commercial cancer centers to date have been a source of recurring repeat demand, so the pace at which we activate accounts is what gives us confidence in future revenue growth. On that measure, our progress is clear. At the time of our May 14th earnings call, we had 16 active commercial cancer centers. We ended the second quarter with 21 active commercial cancer centers, an increase of more than 30% in just one quarter. We remain on pace to meet or exceed our target of 36 active commercial cancer centers by year-end 2026. The majority of these paying customers are cancer centers that purchase RenovoCath are distinct from the clinical trial research sites participating in our phase III TIGeR-PaC study. Our customer pipeline beyond those active centers is robust.

[Shaun Bagai, CEO at RenovoRx]

In addition to our 21 active customers, we have 42 additional centers in various stages of evaluation, approval, and activation, representing a total of 63 centers in our commercial funnel. The growth of our total customer funnel is a 31% increase over the 48 centers we reported on our first quarter call. In addition, 15 of our TIGeR-PaC trial sites are positioned to move to commercial RenovoCath use, and several have already begun doing so. As these sites transition, we expect them to be a meaningful contributor to our revenue in the second half of 2026. Another key metric of commercial success is repeat orders. We continue to see strong repeat ordering from our existing customers, which is one of the clearest indicators of physician satisfaction and product utility in interventional oncology.

[Shaun Bagai, CEO at RenovoRx]

When a physician places a second, third, and fourth order for RenovoCath, it confirms the product is delivering an important treatment option and clinical utility for their patients. Given our customer pipeline and based on what we're seeing so far in terms of repeat orders, our third-quarter revenue is tracking to exceed the second quarter and become yet another record revenue quarter. This commercial growth and strong customer pipeline are driven by a lean commercial team that is in place and executing. The results certainly speak for themselves. Going forward, we may incrementally add to our sales team where a specific market opportunity warrants it, but our growth model remains focused on efficient capital allocation and investing into our growth as needed. We are deploying the capital from our March capital raise prudently and effectively, and we are generating a strong return on that investment.

[Shaun Bagai, CEO at RenovoRx]

We reduced our operating loss for the quarter, and as our revenue scales, we expect our operating loss will continue to decline. Physician-to-physician advocacy continues to grow, which is historically the most powerful driver of adoption in interventional oncology. Since receiving FDA 510(k) clearance, RenovoCath has been used in more than 900 successful procedures. Before I turn the call over to Ramtin, I want to take a moment to touch on the current overall pancreatic cancer market and how we believe this benefits us. There has been significant industry attention recently on new therapies for pancreatic cancer, and we believe those developments represent a meaningful opportunity for RenovoRx. Because RenovoCath is a device to deliver treatments more optimally, we see breakthroughs in pancreatic cancer therapy as complementary and as an important tailwind for our business.

[Shaun Bagai, CEO at RenovoRx]

Beyond always putting the patient first for this deadly disease, I want to remind everyone that our TAMP technology, enabled by RenovoCath, is a collaborative, localized drug delivery platform with two ways emerging therapies can strengthen our opportunity. First, we can deliver established drugs locally, sequentially, or concurrently with novel therapies, creating the potential for improved patient outcomes, concentrating therapy where it is needed. Second, as new drugs come to market, we believe many of them can be delivered directly by our RenovoCath device. In both cases, our view is that novel improved therapies make our targeted delivery platform even more valuable. We recently announced the first commercial clinical use of RenovoCath in sarcoma treatment, marking the expansion of our targeted drug delivery device to other solid tumors and showing real-world potential for expansion of localized delivery of chemotherapy.

[Shaun Bagai, CEO at RenovoRx]

Ramtin will go into more detail about this milestone, but it is important to note that this expansion is physician-driven, an important and encouraging element as we look towards the potential for broader adoption of RenovoCath. In closing, I could not be more proud of our team for their execution and hard work. The second quarter was a record quarter for us, not only from a revenue perspective, but also across all our key metrics, including growing customer pipeline, high retention rate, and repeat orders. With that, I'll turn the call over to our Chief Medical Officer, Executive Chair, and Founder, Dr. Ramtin Agah.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

Thank you, Shaun, and good afternoon, everyone. Before discussing the broader opportunity, let me briefly remind everyone of the science at the core of what we're building. Our patented Trans-Arterial Micro-Perfusion, or TAMP technology, enables targeted therapeutic delivery across the arterial wall near the tumor site, designed to bathe the target tumor while potentially minimizing a therapy's toxicity versus systemic intravenous therapy. For patients fighting solid tumor cancers while also managing the debilitating side effects of treatment, that difference matters. For decades, cancer care has rested on three pillars, surgery, radiation, systemic chemotherapy. We believe TAMP, enabled by RenovoCath, represents a fourth option, one that is targeted, tolerable, and increasingly supported by growing body of real-world clinical evidence. As Shaun mentioned, earlier this month, we announced the first commercial clinical use of RenovoCath in sarcoma treatment, showing the real-world potential beyond LAPC for expansion of localized delivery of chemotherapy.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

This first commercial sarcoma case marks an important milestone for RenovoRx, demonstrating RenovoCath's potential as a standalone device for treatment of other solid tumors beyond our core focus on locally advanced adenocarcinoma of the pancreas. This was a case where a physician who has treated LAPC using RenovoCath came back to RenovoRx with a plan to use our catheter to treat sarcoma, and we believe that this is a powerful endorsement of RenovoCath's potential. We believe targeted localized delivery may offer advantages over systemic treatment for many other difficult-to-treat solid tumors, and we look forward to working with our cancer center customers to find new and broadening use of RenovoCath within its FDA cleared fields of use. In the second quarter of 2026, several scientific data updates supported the use of intra-arterial gemcitabine delivery via TAMP in LAPC.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

A peer-reviewed case study by researchers at Moffitt Cancer Center, published in Radiology Case Reports, found that PET-CT imaging, rather than CT alone, showed a meaningful reduction in tumor metabolic activity after treatment. These findings suggest that PET imaging may help optimize monitoring of therapeutic response following TAMP-delivered treatment. In addition, the PK sub-study of the TIGeR-PaC trial has been accepted and soon to be published in the Journal of Cancer Chemotherapy and Pharmacology. The findings support TAMP as a targeted delivery method for gemcitabine, demonstrating its potential to increase local drug potency while reducing systemic exposure and common side effects. Finally, a peer-reviewed case series case reports in oncology from researchers at Hackensack Meridian Health Jersey Shore University Medical Center was accepted and will be published in the near future. The case series highlights their experience with TAMP procedure in LAPC.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

The ramping up of publications of TAMP procedure by physicians, I believe, is another sign of adoption as TAMP traverses from an experimental procedure to becoming standard of care. Earlier this week, we were pleased to announce that RenovoRx has achieved full enrollment in our phase III TIGeR-PaC trial for locally advanced pancreatic cancer. This significant milestone reflects years of patient recruitment, clinical execution, and collaboration among investigators and study team evaluating intra-arterial gemcitabine delivered through RenovoRx's Trans-Arterial Micro-Perfusion, or TAMP platform, a RenovoCath device as a novel drug device product candidate for difficult-to-treat LAPC. The primary endpoint of the study is overall survival. TIGeR-PaC is designed to evaluate whether RenovoRx's patented method of targeted delivery of the chemotherapy gemcitabine improves patient survival, safety, and tolerability compared to standard of care. Systemic intravenous chemotherapy, gemcitabine plus ABRAXANE.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

On August 7th, TIGeR-PaC trial investigators were notified that patient enrollment is closing. Completion of the trial is expected during the first half of 2027, after 86 events have been observed. As of August 11th, 2026, 78 events have occurred. Following the completion of the trial, initial top-line data is expected to be available during the back half of 2027. TIGeR-PaC is the cornerstone of our clinical development program, bringing us closer than ever in our effort to validate IAG and its efficacy through rigorous long-term evaluation. Completing enrollment in the phase III TIGeR-PaC trial marks a major milestone for RenovoRx and our clinical program. With enrollment complete, we are now focused on advancing towards final data analysis. We believe TIGeR-PaC will provide meaningful additional validation of our TAMP therapy platform in an area with significant unmet need and limited therapeutic progress.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

The trial is designed to demonstrate the potential safety and superiority of intra-arterial gemcitabine delivered via RenovoCath for locally advanced pancreatic cancer versus systemic IV chemotherapy, the current standard of care. I want to underscore a very important point. The transition of TIGeR-PaC sites is additive to our commercial expansion story, not separate from it. As Shaun noted, several of these sites have already begun moving to commercial RenovoCath use. As more do, they join our growing network of active commercial cancer centers. This is an anticipated and meaningful contributor to our second half 2026 revenue. In parallel with TIGeR-PaC, we continue to build the evidence base for TAMP platform. Our post-marketing registry study is a multi-center study generating real-world safety and efficacy data in patients with solid tumors.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

We also continue to support Investigator-Initiated Trials, or IITs, in borderline resectable and metastatic pancreatic cancer, which are designed to achieve cost neutrality while broadening the platform's evidence base. In the second quarter of 2026, we began supporting a new IIT study for cholangiocarcinoma, or bile duct cancer, which is in process to begin soon. Clinical data builds physician confidence. Physician confidence drives adoption, and adoption drives revenue. Commercial traction is now the foreground of the RenovoRx story, and our TIGeR-PaC clinical trial is important background. We are a scaling commercial business today, not a binary event bet. At the same time, the trial remains a significant long-term value driver, and a positive phase III readout would have meaningful positive implications for physician adoption and reimbursement. Once we reach break-even, we believe RenovoRx can be a profitable, high-margin, low-overhead, cash-generating business, a rare profile in our space.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

Thank you for your interest in RenovoRx. I will turn the call over to our Chief Financial Officer, Mark Voll.

[Mark Voll, CFO at RenovoRx]

Thank you, Ramtin, and good afternoon, everyone. The second quarter was a strong quarter for RenovoRx, and the financial results reflect meaningful progress on our commercial plan. Let me walk you through the numbers. For the second quarter ending June 30, 2026, RenovoRx reported record revenue of $909,000, our strongest quarter to date. That is approximately 61% growth versus first quarter revenue of $563,000, and approximately 115% growth versus $422,000 in the second quarter of 2025. This growth was driven by continued active commercial center expansion and repeat ordering from our existing customer base. Gross profit for the second quarter was $766,000, representing a gross margin of approximately 84%, consistent with our roughly 85% gross margin we reported in the first quarter and reflecting the strong underlying economics of RenovoCath.

[Mark Voll, CFO at RenovoRx]

Research and development expenses for the second quarter were approximately $1.2 million, reflecting our continued investment in the phase III TIGeR-PaC trial, our post-marketing registry study, and our investigator-initiated trial programs. Selling, general, and administrative expenses were approximately $2.9 million, reflecting the disciplined investment we have made to build and support our commercial infrastructure. Loss from operations for the quarter was approximately $3.4 million, an improvement from the $3.5 million operating loss in the prior quarter. However, adjusting both periods to exclude the non-cash expense for stock-based compensation, our second quarter operating loss was approximately $370,000 less than our first quarter operating loss. As our revenue scales, we expect our operating loss will continue to decline. Net loss per share improved to $0.06 compared to a loss of $0.08 in the second quarter of 2025 and a loss of $0.09 in the prior quarter.

[Mark Voll, CFO at RenovoRx]

As of June 30th, 2026, RenovoRx had approximately $9.5 million in cash and cash equivalents, compared with approximately $12.4 million at March 31st, 2026. This change aligns with our internal forecast and reflects the disciplined deployment of capital we raised in March. Importantly, assuming our revenue scales as we anticipate, our active site count grows, our cash burn will continue to decline. We believe our cash position provides sufficient runway to fund operations into the second half of 2027 as we continue to work towards our goal of cash flow positive operations. We will be opportunistic if capital market conditions are favorable, but raising capital is not our focus today. Our priority is revenue generation and execution. Management believes that reaching a quarterly revenue run rate of approximately $5 million would position RenovoRx at cash flow break even.

[Mark Voll, CFO at RenovoRx]

Based on our current trajectory, our internal plan anticipates achieving break-even operations in the fourth quarter of 2027, and we expect to make steady progress towards that run rate as our active site count scales towards and beyond our year-end target of 36 centers. Reflecting on our strong first half performance, we are raising and tightening the range of our full year 2026 revenue guidance to a range of $3.75 million-$4.25 million from our prior range of $3 million-$4 million. This increase reflects our confidence in continued revenue scaling in the second half of this year. This new guidance implies year-over-year growth of 241%-286% in 2026, compared to revenue of $1.1 million in 2025. Beyond revenue, our primary commercial KPI remains active commercial center count.

[Mark Voll, CFO at RenovoRx]

We are at 21 active commercial centers at quarter end, and are targeting 36 or more by year end. As TIGeR-PaC sites continue their transition to commercial use in the second half of this year, we expect that activity contribute meaningful to revenue. Executing within our guidance range keeps us on the path we have laid out towards cash flow positive operations. Thank you. I'll turn the call back to the operator for Q&A.

[Operator]

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question is from Justin Walsh with JonesTrading. Please proceed with your question.

[Justin Walsh, Analyst at JonesTrading]

Hi. Thanks for taking the questions. I was wondering if you could provide additional color on what prompted the physician to use TAMP and RenovoCath in that particular sarcoma patient.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

Justin, thanks for the question. As we've been talking about the utility of this technology to reach more tumors is out there. This is a physician who's gotten comfortable with treating pancreatic cancers specifically, and based on that, he saw a case where there's a difficult to reach sarcoma tumor. These are challenging cases in general. With that, he thought this would be a great opportunity to be able to utilize RenovoCath to isolate flow and really get good tumor penetration of the drug. It's what we expect. Radiologists are quite inventive in terms of physicians, given that they work across the entire body. As we've been told by many doctors, is once we get this in their hands, they will see themselves getting in positions where they could utilize this with other tumors and other patients.

[Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder at RenovoRx]

It's, I believe, the beginning of adoption across the spectrum in several areas, and it's great to see that he took the opportunity here to help one of his patients with our technology.

[Justin Walsh, Analyst at JonesTrading]

Great. Thanks. One more question from me. I am wondering if you can expand on how learnings from activating the first set of commercial centers can help facilitate your efforts to convert the additional centers from your pipeline.

[Mark Voll, CFO at RenovoRx]

That's a great question, Justin. That's one of the reasons we didn't hire a big sales force last year, is to really understand what the sales cycle and sales process is. We found that there are a lot of moving parts in terms of getting VAC approvals to be able to purchase the catheter. Also, in terms of referring patients and making sure that referring patients know that the technology is now available when it becomes available, and the radiologists are connected with those physicians as well. I think a lot of the learnings to accelerate that site activation, and we've seen this, is to ensure that we've got buy-in from multiple specialties, strong communication, and a lot of touch points. Now having a field force in the field and constant communication and showing up on site is really helping drive that.

[Mark Voll, CFO at RenovoRx]

That was important to have that focus with a small, dedicated sales force.

[Shaun Bagai, CEO at RenovoRx]

Versus going out to look at a partnership this early stage in market development to ensure that we actually get products on the shelves and then get referring physicians in with high touch points from our local reps.

[Operator]

Our next question is from [Charles Wallace] with H.C. Wainwright. Please proceed with your question.

[Analyst at H.C. Wainwright]

Hi. Thanks for taking my questions. First one from me. Congrats on finishing enrollment for the TIGeR-PaC study. I was wondering, now that enrollment's closed, how many of the patients actually ended up randomized? I guess I'm asking if the full 114 patients were randomized at this point, or if the number actually fell above or below that.

[Shaun Bagai, CEO at RenovoRx]

We haven't yet completed randomization. That's still in process. We didn't report publicly the exact number, but we're very close in terms of completing randomization with a handful of patients left. Part of allowing the study to be open a little bit longer than June, like we anticipated, was to be able to have physicians enroll patients, have them in the induction phase, so if there are dropouts, we'd be able to randomize the 114th patient without issue. We do have that buffer now. So we'll be pretty close to randomization completion here.

[Analyst at H.C. Wainwright]

Okay. That's very helpful. Then I guess on the site activation, now that you're at 21 active sites, it's, I think, a five gain from the first quarter. What gives you confidence that you can reach the 36 centers by the end of the year? How many of these are from the clinical trial conversion?

[Shaun Bagai, CEO at RenovoRx]

It is interesting.

[Analyst at H.C. Wainwright]

Thank you.

[Shaun Bagai, CEO at RenovoRx]

The 21 is as of the end of the quarter, so we have activated more since then, which we will report out in the not too distant future. What gives us confidence is that we have 42 additional centers that are in the process. Well over 36 total, with the bulk of the 15 TIGeR-PaC sites not yet treating commercially. A handful of those wanted to wait till enrollment is complete, so they would not have a competing interest from the physicians. We anticipate starting to activate those over the next quarter or two. Those should contribute meaningfully to the revenue, but the other 40 or so plus in the customer pipeline will also allow us to overachieve that 36 target by the end of the year.

[Analyst at H.C. Wainwright]

That is helpful. I guess on this, another follow-up on that. On the clinical trial sites that become active commercial sites, what is your anticipation of the timeline from when they are activated to when they order?

[Shaun Bagai, CEO at RenovoRx]

Actually, that's a great point, Charles, and good clarification. So when we say active, these are actually They've already purchased a catheter and treated a patient. What we didn't want to do is start looking at sites that either are ready to go or have not purchased a device yet. So when we say active, these are actually purchasing, using customers. And the other 42 in the pipeline could be somewhere along the process, including being green-lit to order, may have ordered already, but haven't treated their first patient. So they're real active commercial sites.

[Analyst at H.C. Wainwright]

Great. Thanks, Shaun, for answering all my questions.

[Shaun Bagai, CEO at RenovoRx]

Good question. Thanks, Charles.

[Operator]

Our next question is from [Ed Wu] from Ascendiant Capital Markets. Please proceed with your question.

[Analyst at Ascendiant Capital Markets]

Sure. That is close enough. I want to congratulate you guys on all the progress on both fronts. My question is, as you guys scale up the volume for the RenovoCath, do you think your margins can go higher, gross margin, operating margin, as you guys scale up in volume?

[Shaun Bagai, CEO at RenovoRx]

Yeah. Good question, Ed. I think that we have the opportunity to do that when we get to our next generation product, which we will introduce sometime next year. I think that will allow us to increase the gross margins from our current level.

[Analyst at Ascendiant Capital Markets]

Great. That sounds good. My second question is on these additional centers that you guys have in process, is there any difference in terms of the volume or business potentials with the first 21 that you have already activated? Are they much smaller? Are they the same size, revenue potential for these additional centers beyond that you already have?

[Shaun Bagai, CEO at RenovoRx]

Yeah, great question, Ed. What is great to see is that the 21 is a good representation of this full spectrum. So within those active centers, we have a couple of the high volume centers, and we have some of the smaller community-based hospitals. If you look at the heat map of about 200 target centers, with the bulk of them being treated at a small number of centers, we have not hit all the high volume places yet. So there is a lot of opportunity here for revenue growth. Mark, I am not sure if you want to maybe touch on the 200 a little bit more in detail.

[Mark Voll, CFO at RenovoRx]

Right. When we look at the market, it's pretty concentrated. The top 10 advanced cancer centers represent about 25% of the market. While we're really targeting the larger ones, we're still looking at a broad range of active cancer centers to bring online. But again, getting the larger centers will give us the largest amount of revenue opportunity in those centers.

[Analyst at Ascendiant Capital Markets]

Great. Well, it's glad that you guys have very good representative samples in your 21 centers so far. I really appreciate you guys answering my questions, and I wish you guys good luck. Thank you.

[Shaun Bagai, CEO at RenovoRx]

Thank you, Ed. I believe that concludes the questions remaining. I want to thank everyone for joining, and excited to have you along this journey as we really demonstrate progress and really, again, capitalizing on our three major missions that took place this last quarter in driving revenue, increasing our commercial centers, and now expanding the technology beyond pancreatic cancer. Looking forward to many great quarters ahead, and if you have questions, please do follow up.

[Operator]

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Participants

Executives

• Shaun Bagai, CEO
• Ramtin Agah, Chief Medical Officer, Executive Chair, and Founder
• Mark Voll, CFO

Analysts

• Valter Pinto, Managing Director at KCSA Strategic Communications
• Justin Walsh, Analyst at JonesTrading
• Analyst at H.C. Wainwright
• Analyst at Ascendiant Capital Markets